6 Secrets to successful real estate investment

investing in real estate

Do you want to dive into real estate investment, but you don’t know where to start from? In this article, we will reveal 6 secrets to help you to be successful in real estate investment. Following these secrets will be for your advantage and profit; ignore them for your own risk. Let’s dive right in!

Money Is Made When You Buy a House, Not When You Sell

If you buy at a discount, you will never go wrong. You may not even buy the most liquid property in the world, but when you have room to resell it, everything becomes easy. Conversely, if you buy with little discount or at market price because “so much in the market goes up”, you find yourself easily with the match lit in your hand.

Always Buy From a Motivated Seller

Who is a motivated seller? One who wants to sell or a person who no longer wants to keep that property; for whatever reason. In short, don’t waste time with someone who clearly has the time or money and wants to make the most of it.  Look for someone who has no time and maybe even no money. He will definitely be motivated!

Fall In Love with the Deal, Not the Property

It happens that you like a property, maybe even a lot. From that moment on, you can no longer be objective. However, remember that it is never the property that makes money as the brick is not put in the bank. It is the deal that the property represents that makes money. Always focus on the business, never on the property.

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Learn To Negotiate the Price of The Property

You must learn the basics of negotiation in order to effectively bargain the price of a property. However, a simple rule is this: never say the price first. It is a rule of thumb that works on all sales occasions, not just real estate. The first party that mentions a price is likely to lose. The same property can have very different prices (high or low depending on whether you are selling or buying).

investing in real estate

It basically depends on your ability to negotiate. The investment properties have a business to do with debt. Investing in real estate with your own money nullifies the advantages of this type of investment. So always try to buy with as little money as possible, or better still, with zero of your own money. Offer very low deposits and make purchase offers that you consider embarrassing ( between 30% to 50%, then negotiate ).

Remember the  #1 secret about real estate investing: Money is made when you buy, not when you sell.

In Real Estate, the Capital First, the Cash Flow After

Cash flow is the good health of a business. You can also have a profitable business, but if your cash flow is negative you will easily end up upside down. With real estate, cash flow is done by making income through renting. However, in Italy it is very difficult to have a positive cash flow if you rent a property on which you are paying a mortgage. Instead, you will need to create capital with trades and then use that capital – along with leverage – for larger trades that will have the goal of generating cash flow.

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investing in real estate

The Real Estate Investment of Your Life Happens Every Week

Real estate deals always exist, in every market period and in every market. If anything, the problem is finding them. But to start finding them, you have to start believing that they are there (because they are, for sure). If you start believing that you can find houses at least 30% off, with financing options to your advantage and with easy and profitable sales opportunities, you will begin to find them.

Every week there will be at least one chance of making a real estate deal. So if what you’re dealing with doesn’t fully convince you, believe me, the sea is full of fish. Move on to the next property.

These six secrets are truly the basis of investing in real estate and if you decide to become a real estate investor, they will come naturally to you. And as you can see they are simple and based on what can be called “commercial intelligence”: buy low, be good at negotiating, do not fall in love with products, but with the wealth that products bring you when you sell them!

Do you want to start your journey into real estate investments? SDG Realties is the best place to start! You can partner with us by bringing in buyers for our listed properties. Contact us for more information.

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